RM40,000. What CAR can you buy?

A lot of people most of which are YOUNG Grads asked me, "What NEW car choices do I have if I got RM40,000 budget. I told them, for NEW car, the choices are VERY VERY LIMITED. It's limited to: ANY PERODUA cars Except MyVi 1.3, Kembara, ATOS, SAVVY, Saga/Iswara, Picanto, Naza Sutera. IN SHORT, There's LESS than 10 choices available.

Now the Picture is very different if you are considering USED cars. Suddenly, you are SPOILED for Choices. For RM40,000, there's LOTS of Varieties of cars to Choose from in any forms...

But if you are getting LOANs (I'm sure FEW will have the money to PAY CASH RM40k!), I'm afraid you can only buy UPTO 11 yrs old cars (typically) with Lowish interest rates (Below 5%). Ie. Oldest 1995. After 11 years, YOU typically HAVE TO PAY CASH or ended up paying HIGHER interest rates (as high as 6%)! In this scenario, LUXURY cars such as BMW, Mercedes Benz, Porsche, Jaguar IS OUT as these cars will be too old by that time it Reaches the RM40k mark.

Case Example 1, I saw an ad in Lelong someone wanted to sell 1981 PORSCHE 944 for RM29,000!!! He is the 1st OWNER!, BUT CASH ONLY!!! If you have the CASH and the money to Maintain and Insure the car, then it's a good buy...

Case Example 2: This friend of mine was VERY EXCITED knowing that He can owned a 1992 MERCEDES 230E W124 (with AMG 17" rims, "77" no plate, bodykit, Automatic, Sunroof etc) for RM40,000. Ie. within his budget (Initially he thought). BUT he was disappointed, CANNOT GET LOAN as the car was too OLD... This means that he HAD to PAY CASH! Having ONLY 2 yrs work experience and still working as a TRAINEE, obviously he cannot afford... What a waste...

All is not LOST, depends on your criteria, RM40k still have LOTS and LOTS of "CLASSY" and/or RESPECTABLE Japanese and "COLD European" cars which is below 11 yrs old and can still obtain Loan... Here are some of My recommendations:

EXECUTIVE Japanese Car:

1) Honda Accord 2.0i (1998) OR 2.2i(A) 1997 = RM40k
2) Nissan Cefiro V6 3.0i 1998 = RM32,000 (This is the BEST V6 engine, surprisingly Economical for a 3.0L car, But Road tax RM2000!). A 2.0iV6 model is RM5-7k more and Road tax RM391.00.
3) Toyota Camry 2.2GX 1997. RM36,000. The 1994-97 old model.
4) Ford Telstar 2.0i Ghia. 2001 model: RM42,000. THIS is the Newest "2000cc" used NON-Proton your money can buy... 5 YRS OLD for RM42k, Note that BRAND NEW price is RM110,000! (It is actually Mazda 626 with Ford badge hence LOWER Maintenence and reasonable priced spare parts). I am a happy OWNER one of these...

Executive "COLD" Continental car (ie. Weaker demand) which still can obtain loan easily.

1) Audi A4 1.8i Non-turbo, 1997 RM43,000.
2) VOLVO S40 2.0i Non-turbo 1999. RM48,000. But beware of the High maintenence costs and reliability.
3) Peugeot 406 2.0 Deluxe 2000, RM45,000.

Other 4 door cars:

1) Mazda Lantis 1.8i(A) Hatchback 1997, RM32,000. Stylish car with "Pillarless doors". In DEMAND, hence the Highish price (for the age).
2) HYUNDAI ELANTRA 1.8iGLS(A) 2003(!), RM38,000(!). Wonder why RESALE value so LOW. Note that brand new: RM90,000. Within 3 yrs value dropped so MUCH! Bad news for 1st owner BUT GOOD NEWS for YOU!
3) HONDA Civic EK 1.6i VTEC 1997, RM42,000. Another HOT Demand car, Very HIGH resale value and ENDLESS Modification OPTIONS...

4) Toyota Corolla AE101 SEG 1.6 1995, RM29,000. This 7th Generation Corolla, according to many IS THE BEST 1.6 Corolla. Known as "MINI LEXUS", better than AE111 and Altis 1.6. Why? AE111 (1996-2000 model) Corolla Shrunk in size, more cramped, boxier looking, designed and build in middle of recession=A STEP Backward in quality and refinement. BELIEVE IT OR NOT the AE101 SEG: 0-100km/h in 9.7 secs (M), 11 secs (A). That's faster than The newer AE111 SEG and ALTIS 1.6 (which is underpowered), lose out to Altis 1.8 VVTI though. HIGHLY RECOMMENDED!!!

IF YOU WANT FAST car for RM40k, there's the following choices:

1) VOLVO 850 T5 2.3i WAGON (97 onwards known as V70). 1997 model priced RM43,000 only. This TURBOCHARGED car has a Top speed of 230km/h and 0-100km/h in 7.3 SECS!!! It's so fast that our POLIS used as Chase car. Though Maintenence is HIGH and Reliability is BAD. But if it's in GREAT Condition with low mileage and Service record or 1 owner, then GRAB IT!

2) PROTON PUTRA 1.8i DOHC 2000 model RM34,000. This is, in my opinion THE BEST PROTON! Very stylish. 0-100km/h below 8 seconds and top speed 210+ km/h. VERY WORTH THE MONEY!
(I Recommend it over the Satria GTI as I feel it's More practical with Boot and more rear seat space, more exclusive (Rarer), AUTOMATIC Option, and slightly better Looking!).

3) BMW 325i E36 1994. RM40,000. ANOTHER POWERFUL car, Just missed the cut for Lowish Interest rate loans (more difficult as oldest recommended year to obtain LOAN is 11 yrs old). But If you CAN GET LOAN, this is the ULTIMATE DRIVING MACHINE. FUN car. The IT CAR (Very CLASSY). Rock solid Resale value. Maintenence and Spare parts costs are not an issue as there's MANY Units on the road and TONS of "CHOP SHOPS" and spare part shops...

SUV Options:

1) Toyota RAV4 2.0i 5dr. 1995. RM43,000.
2) Ford Ranger Pickup 2.5i Turbodiesel 2001 (M). RM41,000. Auto add another RM2-4k)

Other cars:

- See motortrader, for "abnormal National car" such as "Wira EVO, Satria 1.8 GSR, Waja Mivec, Perdana V6 Twin Turbo. Ie. "Modified MILOTINS". Not recommended as the BODY and CHASSIS can't cope with the power, unless you reinforced it. But few will bother to do that coz it's EXPENSIVE. Also, some have no JPJ approval.

- In motortrader, There's FTOs, RX7, Levin AE86, Silvia 180SX, Original EVO1, MR2 (Ferrari like version) within the 40k budget... BUT MOST ARE OVER 11 yrs old and DIFFICULT TO GET LOAN. But If you are lucky and able to get loan, then your choice will be even wider...

MPVs

I won't recommend as This "write-up" is meant for Young Grads or Below 30 yrs old with 40k budget to spend.